Business Valuation Services for Mergers and Acquisitions
Know your business worth for accurate decision-making
An accurate business valuation is a huge advantage in volatile economies and unstable markets.
Knowing the realistic value of your business will give you the necessary confidence for any negotiations or potential transactions.
Why do you need a Valuation?
If you are seeking to exit your business, encountering any changes in your business or personal life, wanting to avoid future disappointment or an unexpected tax bill, determining the value of your years of hard work is crucial. Your business needs to be valued accurately as an important focal point of your transition and exit plan.
Why is EBITDA used?
The most common method used to determine a fair sale price for a business is calculating a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization), which is a measure of a company’s ability to generate operating earnings. The multiples vary by industry and could be in the range of 3x to 10x EBITDA for a small to medium sized business, depending on market conditions.
What’s the Difference in Methodologies?
Not every business valuation is equal for establishing a fair value for your company. There are different approaches to your valuation. If incorrect methodologies are applied or if working with nonspecialized advisors (including accountants), you may miss out on factors that substantially increase the final selling price of your business or measure overall company performance.
“Accounting numbers are the beginning, not the end, of a business valuation.”
~ Warren Buffet
Pavilion’s accredited professional business valuation specialists execute an accurate, objective and independent assessment of value.
Our advanced valuation methodologies and expertise ensure you avoid the risk of seriously undervaluing your largest asset at exit.
It’s more than EBITDA
There’s more than meets the eye…
Consider the valuation processes
Earnings before interest, taxes, depreciation and amortization plays a significant contribution to the business valuation, however there are multiple factors that can make a considerable difference to the outcome.
Goodwill, tangible and non-tangible assets, property, management knowledge and commitment are integral to understanding the core value of what your business is worth.
Ideally the business should show strong, profitable cash flow to reduce the risk for buyers.
Real goodwill is worth something in the marketplace
Your business is worth MORE than you think!
Today, up to 80% of a firm’s value can be associated with INTANGIBLE ASSETS, such as:
- Brand, Reputation & Culture
- Customer Satisfaction
- Human Capital
- Risk management
- R&D (Research & Development) pipelines
- Intellectual property
- Trading License to operate
Mitigating risk…
There will always be their price, your price and the fair price. Knowing the fair value provides a sense of security, stability and comfort.
Pavilion assesses the true value of your business.
We value various components of your business, detailing an accurate assessment of current real market conditions, entailing many valuation indicators. We identify areas of growth and weakness so you can make informed decisions about the future of your business to maximize value.
Free Complimentary Book
Learn how to assess what your business is really worth.
This guide contains critical information, tips and suggestions about the valuation process. Discover what valuations are used for, what your business is worth and what the different approaches are to a business valuation. This financial check-up can prepare you for the next phase of your business strategies.
Create future value for your business. Learn more here:
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Differing expectations can cause conflict
Credibility counts
Determining the value of your company can cause conflict between you and your successors, potential buyers, financial partners, family members or tax assessor.
A professional business valuation from a third-party will hold more credibility with potential buyers than numbers generated in-house.
Determining your price with confidence
Due to the complex nature and high stakes of selling your company, a professional valuator can help you set a selling price and determine whether a buyer’s offer is reasonable.
Pavilion’s comprehensive, professional business valuation process offers a true indicator of your company’s worth and success.
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President, BC ComfortDear Stephen:On behalf of Norm and I, just a short note of thanks to you and the team at Pavilion for your work assisting BC Comfort senior management via our...President, BC Comfort Business Value Gap AnalysisRead MoreDear Stephen: On behalf of Norm and I, just a short note of thanks to you and the team at Pavilion for your work assisting BC Comfort senior management via our unique "value gap analysis". The findings of which helped strengthen several core processes during an important period of transition in our industry. We have a better business because of your efforts. President, BC Comfort Business Value Gap Analysis Close
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When Pavilion presented me the valuation and showed how they had used over 20 different valuation methods I was confident that we have the most accurate and unbiased...Business ValuationsRead More
When Pavilion presented me the valuation and showed how they had used over 20 different valuation methods I was confident that we have the most accurate and unbiased valuation possible that is a fair representation of business value. We have been working with them for over 15 valuations – we now use Pavilion – they really know their stuff! Business Valuations
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Valley Personnel Ltd.The Pavilion team exceeded my expectations. They provided me with a Valuation that surprised me, revealing a lot of extra value that I hadn’t considered...Valley Personnel Ltd. Share Sales to Strategic BuyerRead More
The Pavilion team exceeded my expectations. They provided me with a Valuation that surprised me, revealing a lot of extra value that I hadn’t considered. I was expecting disruption but they managed the sales smoothly from start to finish. They handled the entire sale process with complete secrecy and my staff was not alerted or alarmed. I was expecting a lower sale $ $ value and the successful buyer paid more than I expected. They negotiated a higher cash component and great transition terms for me. Valley Personnel Ltd. Share Sales to Strategic Buyer
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